Indian Rupee Closes Flat Against U.S. Dollar

The Indian rupee closed flat against the U.S. dollar on Tuesday ahead of the release of the U.S. consumer price index later in the day.

The local currency closed little changed at Rs 83.01 against the U.S. dollar. It closed at Rs 83 on Monday, according to Bloomberg data.

"Indian rupee is expected to remain with a narrow range of Rs 82.95-83.05 as inflows match outflows, keeping the dollar/rupee pair in a small range with no indication of any directional move from any other quarters," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors said.

"Fed’s dovish stance remains in place despite minimal chance of a rate cut in March. U.S. January CPI data are set to determine the timing of Fed cuts and dollar dynamics. Dollar index and treasury yields are managing to stay above 104.00 and 4.15%, respectively," Kunal Sodhani, vice president of Shinhan Bank said.

"For dollar/rupee, Rs 82.85 will act as a support and Rs 83.15 as a resistance," he said.